Genzyme board unanimously rejects Sanofi-Aventis' $69/share tender offer as 'inadequate and opportunistic'

Giving its official reaction to French drug major Sanofi-Aventis’ (Euronext: SAN) move to approach shareholders directly (The Pharma Letter October 4), US biotech firm Genzyme (Nasdaq: GENZ) says that its board of directors has voted unanimously to reject the unsolicited $69.00 per share, or $18.5 billion, tender offer and recommends that Genzyme shareholders not proffer their shares.

Genzyme’s shares rose less than 1% to $73 in extended Nasdaq Stock Market trading yesterday. The stock had dropped as much as 43% from a 2008 high of $83.25 after  the company experienced contamination at a Boston plant caused shortages of its rare disease drug and eroded sales (TPLs passim).

According to the Wall Street Journal, while not actively soliciting a “white knight" (which has so far not emerged), Genzyme will “evaluate alternatives for the biotechnology firm, including reaching out to other companies.” Sanofi-Aventis’ chief executive Chris Viehbacher has previously indicated the company would be willing to raise its offer if Genzyme provided details to justify a boost, but could not go as far as $80 a share. This morning, according to a Bloomberg report, the French firm denied that it had offered Genzyme a price range of $69-$80 a share during a September 20 meeting between the two firms’ CEOs.